How Indiana’s Elise Nieshalla is leading on the national debt
In a recent Governing piece, Indiana State Comptroller Elise Nieshalla argues that Washington’s debt crisis is not unsolvable and that states offer a proven model for reform. Nieshalla was interviewed by American Habits in a profile on fiscal responsibility that published in October.
For Governing, she points to Indiana’s own turnaround after a severe cash-flow crisis two decades ago, when disciplined budgeting, debt repayment, spending restraint, and targeted tax relief restored fiscal stability. Today, Indiana holds a AAA credit rating, maintains strong reserves, and ranks among the lowest states in debt per capita.
As federal interest payments surge past defense and Medicare spending, Nieshalla warns that delay and deficit spending now pose a national security threat. Her argument is explicitly federalist: states, which are constitutionally required to balance their budgets, understand fiscal limits in ways Washington has long avoided. That perspective is now being elevated through efforts like the National Debt Crisis Task Force and Indiana’s bipartisan Senate Resolution 51, urging federal debt reduction. The message is simple but urgent, fiscal responsibility is not partisan, and the states are once again leading where Washington has failed.
Thankfully, Indiana is a state that has at least been vocal about the immense dangers of the national debt crisis and what it means for Americans, which is a more meager existence for all of us. Former Indiana Gov. and Office of Management and Budget Director Mitch Daniels rightly called our debt the “new red menace.” I thought it was a great line at the time that could spur some action but unfortunately the debt crisis has only worsened.
Anybody making attempts to lead on our obscene debt deserves recognition and praise and I’m glad Nieshalla and Indiana are speaking up.
—Ray Nothstine
— The Federalism Beat